The San Francisco Fair Chance Ordinance (FCO) was created with the belief that people deserve a second chance. It helps people seeking employment who may otherwise be disregarded for their criminal history.
While employers are free to use their own criteria to decide which candidates are fit for an available position, the San Francisco FCO changes how an applicant’s criminal history can be utilized during the recruitment and interview processes.
Here’s what employers need to know about the San Francisco Fair Chance Ordinance and how Mosey can help with business compliance.
What Is the San Francisco Fair Chance Ordinance (FCO)?
The San Francisco Fair Chance Ordinance (FCO) is a law designed to help people with previous criminal records or arrests obtain employment in San Francisco.
Applicants with records are allowed to withhold certain information about their past, and potential employers are forbidden from asking certain questions until they’ve given the applicant a conditional offer of employment.
The FCO exists to reduce the potential for discrimination against applicants with criminal records. Its purpose is to compel employers to consider applicants based on their skills, experience, and knowledge before denying them consideration based solely on their background.
People with criminal records often have difficulty obtaining gainful employment, so the FCO aims to help qualified applicants find suitable positions by removing the obstacle of their legal history.
What Are the Requirements of the San Francisco FCO?
The San Francisco Fair Chance Ordinance is a legal hiring requirement that prevents employers from asking questions or collecting information about an applicant’s criminal background before presenting a conditional offer. The state of California values employee privacy, so employers are not allowed to obtain information about candidates too early.
The FCO delays questions about an applicant’s criminal background and prohibits employers from considering certain background information.
What an Employer Cannot Consider
What background information must employers disregard? Here’s an overview:
- Arrests that didn’t lead to a conviction (except for unresolved arrests where an applicant is still awaiting trial or under investigation)
- Expunged, vacated, or dismissed convictions
- Participation in deferral or diversion programs as sentenced by the court
- Convictions older than seven years (unless the convicted individual would be hired for a position involving supervisory or caregiver duties for children or vulnerable adults)
- Juvenile convictions
- Decriminalized convictions, such as convictions related to the use or cultivation of cannabis
- Offenses other than misdemeanors or felonies
Removing these considerations from the conversation is meant to compel employers to limit the scope under which they evaluate a candidate. The idea is to leave room for people who have committed or been arrested for minor offenses as adults while allowing employers to consider recent, serious convictions that may impact the safety of their workplace.
What Are the FCO Compliance Requirements for Employers?
The Fair Chance Ordinance describes what employers must do to comply with the law. Employers must provide sufficient notice that they intend to abide by the ordinance, give applicants and employees clear notice of their rights, and use proper vetting procedures when interviewing candidates.
Include FCO Statement in Job Ads
The law requires that all job ads in San Francisco include a statement affirming that applicants with criminal records are allowed to apply. San Francisco recommends using this statement:
“Pursuant to the San Francisco Fair Chance Ordinance, we will consider employment for qualified applicants with arrest and conviction records.”
Make FCO Posters Available
The official FCO labor poster must be posted in every workplace or job site where an employer operates. Employers must post English, Chinese, and Spanish versions of the poster. If 5% or more of their workforce speaks a language not listed, they must hang a poster in that language. Employees must receive a copy of the poster (printed on paper) to inform them of their rights.
Give Employees a Fair Chance
One of the most important compliance requirements is fair chance itself. Before deciding not to hire an applicant, terminating a worker’s employment, or passing them up for a promotion based on their criminal history, employers must offer them a chance to explain the situation and prove they’ve been rehabilitated since the incident.
Prepare and Submit Compliance Reports
FCO compliance reports hold San Francisco employers accountable for following the ordinance. They also provide valuable data on how well the ordinance improves employment rates among workers with criminal records.
Who Must Comply With the San Francisco FCO?
The San Francisco Fair Chance Ordinance applies to any San Francisco area employer with five or more employees. This guideline exempts family or “mom-and-pop” businesses with small internal staff who may not openly advertise positions to the public.
If you have five or more employees, you must hang compliance posters, include a fair chance statement in every job ad, and abide by the criteria for the candidate screening process.
The Fair Chance Ordinance also applies to housing providers when selecting tenants. That being said, the rules and requirements for housing providers differ slightly, given the nature of the relationship between a landlord and a tenant compared to that of an employer and employee.
What Happens if an Employer Violates the FCO?
If applicants believe they were denied a job in direct violation of the Fair Chance Ordinance, they are encouraged to contact the San Francisco Office of Labor Standards Enforcement (OLSE). The OLSE will review the case to determine the credibility of the applicant’s complaint.
Employers found liable for violating the ordinance may face fines and penalties imposed by the city of San Francisco. In some cases, applicants may have the right to pursue legal action against an employer for denying employment, wrongful termination, or discrimination based on the FCO.
How Does the California Fair Chance Act Impact the San Francisco FCO?
The California Fair Chance Act took effect after the San Francisco Fair Chance Ordinance. It serves a similar purpose — to improve the chances of workers with criminal histories being selected for job openings if they are suitable candidates.
Although the California Fair Chance Act and the San Francisco Fair Chance Ordinance have much in common, they do not perfectly overlap. San Francisco employers are expected to follow both hiring laws simultaneously. The laws do not conflict; they simply combine to form additional compliance steps and requirements.
Stay Compliant With Mosey
Mosey’s compliance management platform makes it simple to track state and local business compliance issues like the San Francisco Fair Chance Ordinance. Let Mosey run in the background to help you manage important compliance concerns while you focus on finding the ideal candidate for your open position.
Schedule a demo with Mosey to learn how we can help you grow your business in the Bay Area and beyond.
Read more from Mosey:
- Labor Law Posters for Remote Workers: Requirements and Resources 2024
- California Exempt vs. Non-Exempt Employee Labor Laws
- Ohio Payroll True-Up Report: Reporting Period and Compliance
- Oregon Transit Payroll Taxes for Employers Compliance Guide (2024)
- California’s Wage Theft Prevention Notice Requirements Explained
- Los Angeles Fair Chance Ordinance (FCO) Compliance Guide
